Raiffeisen Bank Posts 2Q Earnings Decline After Scaling Back Russian Operations
01 August 2023 - 4:49PM
Dow Jones News
By Pierre Bertrand
Raiffeisen Bank International on Tuesday reported a decrease in
second-quarter earnings, and said it had reduced its Russian
operations in the three-month period.
The Austrian bank said it made 578 million euros ($635.7
million) in quarterly net profit compared with EUR1.27 billion in
the same period a year earlier.
Its operating result in the quarter came to EUR1.15 billion as
quarterly net interest income increased 12% on year to EUR1.36
billion.
Raiffeisen's quarterly net fee and commission income fell 17% on
year to EUR732 million, the bank added.
The company has reduced its operations in Russia, it said. The
country contributed 35% to the bank's operating result in the
quarter compared with 45% in the first quarter of the year,
Raiffeisen said.
Earnings for the half year were hurt by high portfolio-based
provisions for litigation in Poland of EUR424 million while the
decline also reflected last year's gain of the sale of the
Bulgarian subsidiary bank, Raiffeisen said.
Looking ahead, Raiffeisen said it expects 2023 net interest
income of between EUR3.8 billion and EUR4.0 billion, net fee and
commission income of around EUR1.8 billion and customer loan growth
of around 2%, excluding Russia and Belarus.
Write to Pierre Bertrand at pierre.bertrand@wsj.com
(END) Dow Jones Newswires
August 01, 2023 02:34 ET (06:34 GMT)
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